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Who does what in your organization? Over the years, many of our organizations have grown from one point of vendor contact to several different points of interaction. Responsibility has been delegated to many individuals depending upon the specific task at hand. I found it useful to draw a map for each new sales rep that enters the building. It was a simple two-page letter titled How to do business with Acme Construction Supply (my former company). In the letter, I stated our preferred method of communication, the best hours for meetings and some other expectations regarding literature and showroom displays. The most important part of the letter stated where to go for specific issues. Who handles new product introductions? Pricing updates? Co-op advertising? Accounts payable? By drawing a map for the rep, they were able to go directly to the source of their request without disturbing several people along the way. Our most effective reps embraced the information; the least effective folks disregarded it. Who do you think got to spend more time in front of our sales team?

Create a marketing plan

Speaking of sales, the most successful relationship with a manufacturer begins with a solid marketing plan. Many of us avoid this step. If the price is good, and the quality is acceptable, revenue occurs. For many of our lines, we hope this is the case. What happens when we really plan to drive a line? The results can be astounding.

At the beginning of the year, sit down with the manufacturer rep and create a plan of action. Plan out the use of marketing funds. Target campaigns around new product launches. Most importantly, define the responsibilities of each party. If you agree to have four product knowledge meetings with a manufacturer, you must fulfill your obligation. Again, this exercise is all about setting expectations. I agree to do this and you agree to do that. Make sure that you have quarterly meetings to assess the progress. It is easier to make adjustments along the way. The last thing we want is to have a bunch of finger pointing at the end of the year.

Joint sales calls

A part of this marketing campaign generally involves interaction with your sales reps. Many of you have outside sales representation and joint sales calls, with the manufacturer rep, may be appropriate. Establish some ground rules ahead of time. Do we do full days together or half days? Many distributors suggest that half days are more effective. Can the manufacturer discuss your net cost with a sales rep? This is a really sticky situation. Some of us don't make net cost available to our sales teams. We load the cost with a percentage for operating expenses and work from a standard cost. Rather than trying to shove the pin back in the grenade, just let the manufacturer know what you expect.

Who owns the end user? One of the more difficult situations with a joint sales call comes into play after the contact is made. Should the rep be allowed to call on the same end user with a competing distributor salesperson? This becomes especially difficult with independent rep agents. Since they represent several lines of product, they may be calling on the same end user with a different line of product. There is no right answer here; but there are several strong opinions. Prior to setting up the joint sales calls, let the manufacturer know how you view this dilemma. Generally, a good compromise can be worked out.

Free lunch?

How do we handle gifts? This is a very common practice in any sales relationship. Manufacturers have logo items they want to distribute. They may have special trips or outings they want to take you on. These are all designed to strengthen the bond between you and the manufacturer. How do you want to handle this practice? Make sure your employees understand your policy as well. I had a purchasing agent that felt entitled to a free lunch any time a rep wanted to make a sales call. This was not the intention of the company; but no one explained this to the purchasing agent.

If you really want to throw the rep a curve ball, take them out to lunch. Show your appreciation for a rep who goes above and beyond for your company. After I wrote the vendor report card article, I had a nice call from a gentleman who was very proactive in creating vendor rankings. His company actually named a vendor of the year and took several members of that organization on a trip. He understood that it was important to recognize those suppliers who made his company more profitable.